Parliamentary panel flags concerns, suggests ways to improve IBC outcomes

'Operational creditors' interests are often overlooked; they should get adequate representation'

Conflicts of interest, lack of transparency and delays in the resolution process continue to undermine the effectiveness of the Insolvency and Bankruptcy Code (IBC), the Parliamentary Panel on Finance said in a report tabled on Wednesday.

 

The panel recommended reviewing the structure of the Committee of Creditors (CoC) to ensure that operational creditors are adequately represented, “as their interests are often overlooked.”

 

The committee said that the absence of a mechanism to ensure that resolution plans are submitted confidentially and fairly, as well as the lack of a robust framework for monitoring and addressing complaints against resolution professionals are some